Wednesday, June 4, 2008

Krugman digs Ben Bernanke

Ben Bernanke’s aggressive response to the financial crisis may have saved the world from a very severe credit crunch. But where the “committee to save the world” was lionized for its response to a much less serious crisis, Bernanke is getting a lot of grief from critics who think he’s been too soft on inflation — and want him to reverse course.

I’m glad to see that he’s sticking to his guns:

I see the differences between the economy of 1975 and the economy of 2008 as more telling than the similarities … Importantly, we see little indication today of the beginnings of a 1970s-style wage-price spiral, in which wages and prices chased each other ever upward.

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